Some leaders in Congress want to increase the federal tax on gasoline by 5.45 cents per gallon, for the first year, and then index it to inflation. They would use the revenue from this tax increase to finance additional spending on highways and other transportation projects, which they say will benefit the economy. Macroeconomic analysis performed by the Center for…

(This methodology supports the research findings found in the WebMemo: Jobs Creation Act: Original Bill Provides Most Growth.) Methodology   I. Methods Used to Simulate the Original Version of HR 2896   Researchers at the Center for Data Analysis used the Global Insight, Inc. (G.I.I.), U.S. Macroeconomic Model to perform the economic simulation of…

(Click here for methodology)   The American Jobs Creation Act of 2003 that was sent to the full House on October 28 is an anemic, willowy version of the original legislation as authored by Ways and Means Chairman Bill Thomas.   If Congress really intends to use this legislation to assist the economic recovery and expand the job market then…

The Jobs and Growth Tax Relief Reconciliation Act of 2003 that the House and Senate passed on May 23 contains some strong pro-growth elements, specifically accelerating the 2001 marginal rate cuts, lowering the taxation of dividends and capital gains and allowing businesses to accelerate depreciation deductions on their investments. Our analysis shows that these…

Final Tax Cut Package Should Include the Most Pro-Growth Provisions The House and Senate leadership currently has before it three options for cutting taxes and advancing economic growth: the tax legislation recently passed in the House (H.R. 2) and the Senate (S. 1054) and President George Bush's economic plan. To maximize the pro-growth aspects of…

On April 30, Congressman Bill Thomas, Chair of the House Ways and Means Committee, proposed reducing the personal income tax rate on long-term capital gains and dividends to 5 percent for filers in the 10 and 15 percent individual income tax bracket and 15 percent for filers in the higher tax brackets. This proposal could be a compromise between President Bush's plan…

President Bush's proposal to end the double tax on dividends has met with considerable controversy. Opponents claim that dividend tax relief would benefit only the wealthiest taxpayers, while supporters claim that it would spur new corporate investment, leading to additional jobs and higher incomes. This Report provides evidence that the plan would spur higher job…

Earlier this year President George W. Bush unveiled a multi-faceted proposal to improve the nation's economic growth. One of the most important features of his plan calls for abolition of the current federal double taxation of corporate dividends paid to individual shareholders. Critics of the plan charge that it will cost the government too much money. However,…